HomeMy WebLinkAbout2016-01-12 PACKET 04.04.B.
COTTAGE GROVE ECONOMIC DEVELOPMENT AUTHORITY
CITY OF COTTAGE GROVE
WASHINGTON COUNTY
STATE OF MINNESOTA
RESOLUTION NO. EDA 2016-002
RESOLUTION AUTHORIZING TERMINATION OF LEASE AND GROUND LEASE AND
CALLING 2008B PRIOR BONDS
WHEREAS, the City of Cottage Grove, Minnesota (the "City") proposes to issue its
$4,660,000 General Obligation Refunding Bonds, Series 2016A (the "Bonds") to acquire the
Cottage Grove Ice Arena (the "Facility") from the Economic Development Authority of the City
of Cottage Grove, Minnesota (the "Authority"); and
WHEREAS, the proposed purchase price of the Facility is in an amount equal to the
outstanding principal and interest on the Authority's $6,500,000 original principal amount Lease
Purchase Revenue Bonds (Ice Arena Project), Series 2008B, dated June 11, 2008 (the "2008B
Prior Bonds") issued pursuant to resolution adopted by the City Council on May 21, 2008.
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the
Economic Development Authority of the City of Cottage Grove, Minnesota:
1.That the 2008B Prior Bonds which mature on and after April 1, 2017,
shall be redeemed and prepaid on April 1, 2016 (the "2008B Call Date"), in accordance with the
terms and conditions set forth in the Notice of Call for Redemption attached as Exhibit A hereto,
which terms and conditions are hereby approved and incorporated herein by reference.
2.As provided in Section 9.1 of the Lease-Purchase Agreement between the
City and the Authority, dated as of June 1, 2008 (the "Lease"), the Authority hereby determines
and declares that upon the issuance of the Bonds and the funding of the Payment Account as
provided in the City's Bond Resolution adopted on January 6, 2016, the Lease shall be
terminated and the Authority shall have no further right, title and/or interest in and to the
Facility. The President and Executive Director are hereby authorized to execute the Termination
of Lease Agreement and the Ground Lease Agreement between the City and the Authority, dated
as of June 1, 2008.
Approved by the Economic Development Authority on January __, 2016.
By:
Myron Bailey, President
Attest:
Charlene R. Stevens, Executive Director